Index shows economic growth

A survey of rural Midwestern bankers indicated economic growth in the past month, the first time in more than two years that the index has been positive for two months in a row.

The 10-state survey by Creighton University economist Ernie Goss yielded a Rural MainStreet index of 52.6 on a 100-point scale, down from May's 54.3 but still above the level of 50 that indicates an expanding economy.

The index had been below 50 for the previous 26 months in a row, reflecting the effects of the recession on the region's non-metropolitan communities.

Goss, who originated the survey with Greeley, Neb., banker Bill McQuillan, said farmland prices are being bid up significantly, and farm equipment sales were up, according to the bankers' responses. He said he expects both those factors to remain healthy in coming months, even though prices for farm goods are facing some downtward pressures.

The index of bank loans was up to 57.9. After 28 months below 50, the new-hiring index was 50.9, in the growth zone for the second straight month. The retail sales index was 52.6, and the home sales index was 56.1.

The bankers' view of the economy six months from now gave an index of 56.1, down from 63 in May but still on tahe growth side. Goss said economic problems in Europe and the Gulf oil crisis tempered the bankers' confidence.

Nebraska's index was 55.3, down from 55.7, and Iowa's was 54.2, down from 54.8 in May.

Other states in thew survey are Colorado, Illinois, Kansas, Minnesota, Missouri, North Dakota, South Dakota and Wyoming.

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